RI repo laws

Posted by Linda (65.120.51.159) on September 09, 2002 at 09:21:32:

In RI you are liable for deficiency balance, but the lienholder has to have met certain requirements, depending on how much of the loan had been paid at the time of repossession. I'm not a lawyer ;)

RI repossession laws are here:

http://www.rilin.state.ri.us/Statutes/TITLE6A/6A-9/S00053.HTM

quote:
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Out of State Vehicles If a vehicle is subject to the security interest when brought into Rhode Island, the validity of the security interest is determined under the rules set forth in section 31-3.1-19

Right to Redeem At any time before secured party has disposed of collateral or entered into a contract for its disposition under section 6A-9-504, or before discharge under section 6A-9-505, the debtor or any other secured party may, unless otherwise agreed in writing after default, redeem the collateral by tendering fulfillment of all obligations secured by the collateral as well as the expenses reasonably incurred by the secured party in retaking, holding, and preparing collateral for disposition, in arranging for sale, and to extent provided in agreement and not prohibited by law, reasonable attorneys' fees and legal expenses. See Rhode Island Code Section 6A-9-506
Compulsory Sale If debtor has paid sixty percent (60%) of the cash price in case of a purchase money security interest in consumer goods, or sixty percent (60%) of the loan in case of another security interest in consumer goods, and has not signed, after default, a statement renouncing or modifying rights under this part, a secured party who has taken possession must dispose of collateral by sale under section 6A-9-504. If this sale is not conducted within ninety (90) days after taking possession, the debtor may recover damages on the secured party's liability. See Rhode Island Code Section 6A-9-505
Acceptance as Discharge In cases other than those involving 60% consumer goods rule, a secured party in possession may, after default, propose to retain the collateral in satisfaction of the obligation. Written notice of proposal must be sent to debtor if debtor has not signed, after default, a statement renouncing or modifying rights. In the case of consumer goods, no other notice need be given. In others, notice must be sent to any other secured party from whom secured party has received, before sending notice to debtor or before renunciation, written notice of a claim of an interest in the collateral. If the secured party receives objection in writing, from a person entitled to receive notice, within twenty-one (21) days after notice sent, secured party must dispose of the collateral by sale under section 6A-9-504. If no written objection received, secured party may retain the collateral in satisfaction of the obligation. See Rhode Island Code Section 6A-9-505
Sale and Application of Proceeds of Sale A secured party after default may sell, lease, or otherwise dispose of any or all of the collateral in its then condition, or following any commercially reasonable preparation or processing. Any sale of goods is subject to the chapter on sales (chapter 2 of this title). The proceeds of disposition are applied in the order following to reasonable expenses of retaking, holding, preparing for sale or lease, selling, leasing, and the like and, to extent provided for in agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred. Proceeds are then applied to satisfaction of debt secured by security interest under which the sale is made. See Rhode Island Code Section 6A-9-504
Subordinate Lienholder If proceeds remain, they would next apply to satisfaction of debt secured by any subordinate security interest in the collateral, if written notice of demand is received before distribution of proceeds is completed. If requested by the secured party conducting sale, the holder of subordinate security interest must seasonably furnish reasonable proof of interest, and unless he or she does so, secured party need not comply with demand. See Rhode Island Code Section 6A-9-504
Accounting and Deficiency If the security interest secures debt, secured party must account to debtor for any surplus, and, unless otherwise agreed, debtor is liable for any deficiency. See Rhode Island Code Section 6A-9-504
Public or Private Sale After Reasonable Notice Disposition of the collateral may be by public or private proceedings and may be at any time and place and on any terms, but every aspect of the disposition including method, manner, time, place, and terms must be commercially reasonable. Unless collateral is perishable, reasonable notice of time and place of any public sale, or time after which any private sale is to be made, must be sent by secured party to debtor, if debtor has not signed, after default, a statement renouncing or modifying right to notice of sale.

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